WM Revival Hopes Dashed as Investor Abandons $2.02 Billion Rescue

Troubled Chinese electric-vehicle startup WM Motor Holdings Ltd.’s hopes of a business turnaround were dashed as a white knight investor bailed out of a $2.02 billion takeover.

Hong Kong-traded Apollo Future Mobility Group Ltd. Friday dropped its planned acquisition of WM and said a related share placement plan will no longer proceed.

The deal, announced in January, was seen as a survival move for embattled WM as it was intended to float the EV maker in Hong Kong through a backdoor listing. A unit of Apollo, backed by Hong Kong tycoon Li Ka-shing, agreed to take over Shanghai-based WM for $2.02 billion and planned to issue 28.8 billion new shares at HK$0.55 each to fund the deal.